In the energy industry, September through November is known as the “shoulder season,” the calm window between the peak demand months of summer (air conditioning) and winter (heating), when demand and prices are lower. That calm makes it the ideal time to lock in a competitive rate.
In this blog, we’ll cover what you need to know before renewing your energy plan: available plan options, auto-renewal terms and conditions, and what to check in a plan.
Plan Options: Fixed vs. Variable
Some energy providers only offer one rate type, fixed or variable, leaving you with no choice in the matter. That makes it important to know which type your provider offers, what that means for you, and whether it’s in your best interest to shop around.
A fixed rate stays the same for a set period of time, giving you certainty that your price won’t change during the agreed-upon term—even if market prices drop. That stability may cost a little more, but a locked-in rate makes budgeting energy costs easier.
A variable rate, on the other hand, can change by the hour, day, or month, depending on your provider’s terms. As market prices rise, your rate may rise with them, and it can also drop just as easily when market prices fall. That flexibility can work in your favor, but it also makes it harder to predict your bill and budget expenses month to month.
At UGI EnergyLink, you can choose between fixed or variable rates on your energy plan, whether you’re shopping for a home or business, allowing you to choose whichever best fits your residential or commercial needs.
Know Your Renewal Terms
As your contract comes to an end, your provider will send a notice, either by mail or electronically, roughly two months beforehand. This is followed by a second notice about a month out from the contract’s expiration date, often called the Options Notice, which outlines the actions available to you: staying with your current provider, switching, or returning to your local utility.
If you don’t respond to these notices, your provider can automatically renew your contract, typically shifting it to a month-to-month variable rate. Following this automatic renewal, you’ll be notified of your new rate on your first billing cycle.
Even though you can usually cancel an automatic renewal free of charge by contacting your provider, there are still some downsides to not actively choosing your plan. The new rate may not fit your needs, and in some cases, providers may apply higher rates or hidden fees.
At UGI EnergyLink, if your fixed-rate term ends and you haven’t chosen a new plan, switched providers, or returned to your local utility, your contract will automatically shift to a monthly variable rate. If you’d like to switch after an auto-renewal, give us a call—we’ll cancel it free of charge. We’re committed to keeping our customers informed on the terms and conditions of their contracts. By reviewing your plan before your term ends, you can make sure you stay on the rate that works best for you.
What to Check in a Plan
Now that you know what to expect as your current plan comes to an end, the next step is making sure whatever plan you land on actually fits your needs. Before you renew, take a closer look at the details of the plan itself and consider how it interacts with other variables, like your usage and current market prices.
For Homeowners:
- Contract length. Decide how long you want to lock in, based on how much price certainty you want going into winter.
- Early termination fees. Know the cost of exiting if you need to switch before the term ends.
- Usage history. Review bills from last winter to estimate what a new rate looks like for you.
- Price per kWh. Compare your rate to the current market price to see if it’s competitive.
For Businesses:
- Contract length. Weigh shorter terms for flexibility against longer terms for locked-in savings.
- Multi-site terms. Confirm pricing and contract dates are consistent or intentionally staggered across locations.
- Minimum usage commitments. Check for penalties if your usage falls under or exceeds terms.
- Price per kWh or therm. Benchmark against your average usage and current market rates to gauge overall cost impact.
Renew with UGI EnergyLink
Renewing your plan shouldn’t be complicated. UGI EnergyLink keeps enrollment straightforward, with flexible pricing options designed to fit your budget, whether it’s for residential or commercial needs. Choose between our fixed rate for predictability, variable for flexibility, or take advantage of our Winter Lock Program to stay ahead of winter demand.
As one of Pennsylvania’s largest natural gas providers, servicing customers from Allentown to Pittsburgh, we’re here to help you find the plan that works best for you. This energy renewal season, take some time to review your options. Check out UGI EnergyLink for residential or commercial plans today.